On February 5, 2026, Tiruchi MP Durai Vaiko submitted formal representations to Finance Minister Nirmala Sitharaman and Electronics & IT Minister Ashwini Vaishnaw, seeking to leverage the landmark announcements of Union Budget 2026 for the development of Central Tamil Nadu.
His demands are centered on two primary pillars of the new budget: the India Semiconductor Mission (ISM) 2.0 and the University Township initiative.
1. Manapparai SIPCOT: The Next Semiconductor Hub?
Durai Vaiko has urged the Centre to designate the Manapparai SIPCOT Industrial Park as a specialized hub for electronics and semiconductor manufacturing.
- Strategic Timing: The request aligns with the launch of ISM 2.0, which received an expanded outlay of ₹40,000 crore in Budget 2026. Unlike Phase 1.0, this new phase focuses on the “full-stack” ecosystem, including semiconductor equipment, specialty materials, and indigenous design IP.
- The “Jabil” Catalyst: The demand is bolstered by the recent commitment from American electronics giant Jabil, which signed an MoU to invest ₹2,000 crore in the Manapparai park. Land allotment for Jabil’s 70-acre plant is expected to be finalized in February 2026.
- Advantages: The park offers nearly 500 acres of available land, proximity to the Tiruchi International Airport (45 km), and a strategic location along the Tiruchi-Dindigul National Highway.
2. Proposal for a “University Township” in Tiruchi
Budget 2026 proposed the creation of five university townships across India along major industrial and logistics corridors to bridge the gap between academia and industry.
- The Educational Ecosystem: Durai Vaiko highlighted that Tiruchi already possesses a dense concentration of premier institutions:
- National-level: NIT Tiruchi, IIM Tiruchi, IIIT Tiruchi.
- State-level: Tamil Nadu National Law University, Bharathidasan University, and the Anna University Regional Campus.
- Industry Synergy: The presence of BHEL (Bharat Heavy Electricals Ltd) and the burgeoning MSME clusters in the region provide a ready-made platform for the “Education to Employment” mandate of these townships.
- Objective: To transform Tiruchi from a regional educational center into a global Knowledge Hub that supports the industrial corridors of South India.
Budget 2026 Context: ISM 2.0 at a Glance
The government’s pivot in Budget 2026 signals a move toward high-value manufacturing:
| Feature | Details |
| Total Outlay | ₹40,000 Crore (combined for ISM 2.0 and Component Schemes). |
| New Focus | Manufacturing of Semiconductor Equipment (machines that make chips) and specialty chemicals. |
| Tax Benefits | Tax holiday until 2047 for certain high-tech infrastructure and capital goods providers. |
| Rare Earth Corridor | Budget 2026 also proposed a dedicated corridor in Tamil Nadu for processing critical minerals used in semiconductor manufacturing. |